Dubai, United Arab Emirates, 15 August 2024: DP World Limited today announces resilient financial results for the first six months to 30 June 2024. On a reported basis, revenue grew by 3.3% to $9,335 million while adjusted EBITDA3 decreased by 4.3% to $2,497 million with an adjusted EBITDA margin of 26.8%.
| Results before separately disclosed items[1]USD Million unless otherwise stated | 1H 2024 | 1H 2023 | As reported % change | Like-for-like% change[2] |
| Revenue | 9,335 | 9,037 | 3.3% | 3.3% |
| Share of profit from equity-accounted investees (net of tax) | 78 | 82 | (5.3%) | 3.4% |
| Adjusted EBITDA[3] | 2,497 | 2,611 | (4.3%) | (6.4%) |
| Adjusted EBITDA margin | 26.8% | 28.9% | (2.1%) | 26.6%[4] |
| EBIT | 1,494 | 1 ,603 | (6.8%) | (10.0%) |
| Profit for the period | 570 | 885 | (35.6%) | (34.2%) |
| Profit for the period attributable to owners of the Company before separately disclosed items | 265 | 651 | (59.3%) | – |
Results Highlights
Ø Revenue increased by 3.3% to $9,335 million
§ Revenue growth of 3.3% driven by Ports & Terminals.
§ Like-for-like gross container volumes growth of 6.1% driven by strong growth in Americas, Europe, Asia Pacific, and Jebel Ali.
Ø Adjusted EBITDA of $2,497 million
- Adjusted EBITDA decreased slightly by 4.3% due to Red Sea disruption and organic investment in Logistics platform expansion.
- EBITDA margin for the period stood at 26.8% (1H 2023: 28.9%).
Ø Cash generation remains robust, Balance sheet strong
- Cash generated from operating activities stood at $2,091 million in 1H 2024 (compared to $2,134 million in 1H 2023).
- Leverage (Net debt to adjusted EBITDA)[5] on a pre-IFRS16 basis stands at 3.8x (FY 2023: 3.7x). On a post-IFRS16 basis, net leverage stands at 4.2 times compared to 4.0 times in FY 2023.
- DP World’s financial policy is to manage the balance sheet at below 4.0x Net Debt to EBITDA (pre IRFS 16) and to retain a strong investment grade rating.
Ø Selective investment in key growth markets
- Capital expenditure of $994 million ($910 million in 1H 2023) was invested across the existing portfolio.
- Capex split: $593 million Ports and Terminals, $278 million Logistics and Parks and Economic Zones, $122 million Marine Services and $1 million in Head Office.
- Capital expenditure guidance for 2024 is for approximately $2.0 billion to be invested in the UAE including Drydocks World, London Gateway (United Kingdom), Inland logistics (India), Dakar (Senegal), East Java (Indonesia), Callao (Peru), Jeddah (Saudi Arabia), Dar Es Salam (Tanzania) and DP World Logistics (Africa) and Fraser Surrey Docks (Canada).
Ø DP World focused on driving revenue synergies and building long-term relationships with cargo owners
- Enhanced freight forwarding platform that covers more than 90% of global trade to provide cargo owners with improved connectivity.
- Logistics portfolio offers value-add capabilities in fast-growing markets and verticals.
- Group is well-positioned to capitalise on the growing demand for customised solutions in the logistics industry.
Ø Committed to transition to net zero in line with UAE 2050 Initiative
Ø Resilient 1H 2024 performance, confident of delivering an improved EBITDA performance in 2H 2024
- Relatively resilient 1H 2024 performance despite challenging geopolitical and macroeconomic headwinds.
- Confident of delivering an improved second half adjusted EBITDA performance in 2024.
- DP World remains positive on the medium to long-term outlook for global trade and is focused on delivering integrated supply chain solutions to cargo owners to drive sustainable returns.
DP World Group Chairman and CEO, Sultan Ahmed Bin Sulayem, commented:
We are pleased to report resilient results, with revenue increasing by 3.3% in the first half of the year, despite challenging macroeconomic conditions. The year 2024 has been marked by a deteriorating geopolitical environment and disruptions to global supply chains due to the Red Sea crisis. Nevertheless, our strategic emphasis on high-margin cargo, comprehensive end-to-end supply chain solutions, and stringent cost management have been crucial in achieving this financial performance.
In Logistics, our investments have been focused on organically expanding our freight forwarding platform, which now encompasses over 90% of global trade across more than 150 locations worldwide. Strategic investments in sectors poised for high growth allow us to provide value-added services, and we remain dedicated to continuously improving our logistics capabilities. This includes tackling supply chain inefficiencies and enhancing connectivity in key trade corridors to better support cargo owners.
In summary, our balance sheet remains strong, and our operations continue to produce substantial cash flow. This financial strength provides the flexibility to further invest in our current portfolio’s growth and to seize new investment opportunities as they emerge. While the near-term trading outlook remains uncertain due to macroeconomic and geopolitical headwinds, the resilient financial performance of the first half and the positive momentum as we enter the second half, positions us well to deliver stable full year adjusted EBITDA. We remain optimistic about the medium to long-term prospects of the industry and DP World’s ability to deliver sustainable returns consistently.
[1] Results before separately disclosed items (BSDI) primarily excludes non-recurring items. DP World reported separately disclosed items of a $32 million loss (1H 2023: $18 million gain) for the period.
[2] Like-for-like at constant currency normalized for consolidation of LCIT (Thailand), new acquisitions and operations and divestments.
[3] Adjusted EBITDA is Earnings before Interest, Tax, Depreciation & Amortisation and including share of profit from equity-accounted investees (net of tax) before separately disclosed items.
[4] Like-for-like adjusted EBITDA margin.
[5] Includes 50% Hybrid Bonds (USD738 million) as per rating agencies methodology.
